Prominent New England Thoroughbred owner Paul Blanchette reportedly is being investigated for embezzling $5-million from a Massachusetts vocational school where he worked.

The missing money represents the largest amount of public school funds that cannot be accounted for in state history, the Boston Globe reports.

Blanchette, 47, a partner in D&H Stable, in January resigned his positions as treasurer and business manager of Bay Path Regional Vocational Technical School, located in the central Massachusetts town of Charlton, after allegations of financial improprieties surfaced.

A spokeswoman for the Worcester County district attorney's office confirmed that investigators are looking into the theft, but refused further comment.

"I received a call from the Fleet Bank informing me of some irregularities," said school Superintendent Steven Mondor. "I interviewed the individual shortly afterward and asked for his resignation." Mondor then turned financial information over to the district attorney.

An attorney for Blanchette said his client has been devastated by the allegations.

"Right now, it's a lot of hearsay," said attorney Herbert F. Travers. "We are in a powerless position to respond."

Independent auditors said they are looking into transactions as far back as 1993, and that the $5-million figure is a preliminary estimate. Blanchette has worked for the school district for 26 years, and during the last ten years he has had the authority to both request and approve his own expenditures.

The Globe reports that Blanchette appeared on the New England racing scene about three years ago. In 1999, his stable was the leading owner at Rockingham Park with gross purse earnings of $213,194. He also has raced at Tampa Bay Downs and Hoosier Park.

Bay Path on Thursday received emergency approval from Massachusetts Governor Paul Cellucci to borrow $2-million to run the near bankrupt school and $3-million to pay back loans which Blanchette allegedly took out in the school's name.

Meanwhile, Blanchette has put some of his racehorses up for sale, said Bobby DeStasio, director of racing at Rockingham Park.—Steve Myrick